CITIZENS BANK OF KANSAS – PPP FORGIVENESS CHECKLIST



This is a summary of the documentation and information required to apply for forgiveness of you PPP loan.Application: PPP Loan Forgiveness Application Form 3508 (Revised 6/16/20) + Schedule A, PPP Loan Forgiveness Application 3508EZ (if qualified)Documentation:Payroll: eligible cash compensation and non-cash benefit payments, including:Bank account statements or third-party payroll service provider reports documenting cash compensation paid to employees.Tax forms (or equivalent third-party payroll service provider reports) for the periods:Payroll tax filings reported, or to be reported, to the IRS (typically, Form 941); andState quarterly business and employee wage reporting and unemployment insurance tax filings reported or to be reportedDocumentation of the amount of any employer contributions to employee health insurance and retirement plans included in the forgiveness amount.Documentation that payroll compensation calculation was limited to the annualized rate of not more than $100,000.For the 24-week Covered Period, this equates to $46,154 for non-owner employees; This is capped at $20,833 (2.5 months of $100,000 limit) for owner-employees or self-employed individuals.Nonpayroll: Documentation of obligations/services prior to February 15, 2020 but eligible payments from the Covered Period:Business mortgage interest paymentsLender amortization schedule and receipts of cancelled checks verifying eligible payments; orLender statements from February 2020 through one month after the end of the Covered Period verifying interest amounts and eligible payments.Business rent or lease payments: Current lease agreement and receipts or cancelled checks; or Lessor account statements from February 2020 through one month after the end of the Covered Period verifying eligible payments.Business utility payments: Copy of invoices from February 2020 through the Covered Period, plus receipts, cancelled checks, or account statements verifying those eligible payments.If using the PPP Loan Forgiveness Application Form 3508, the following additional documents are required: Full Time Equivalent employees (FTE) calculation: The average number of FTE on payroll per month between February 15, 2019 and June 30, 2019;The average number of FTE on payroll per month employed between January 1, 2020 and February 29, 2020; orIn the case of the seasonal employer, the average number of FYE employees on payroll per month employed on the above dates, or any consecutive twelve-week period between May 1, 2019 and September 15, 2019.Reference Documents to be maintained by Borrower (need not be submitted)PPP Schedule A WorksheetIndividual employee documentation including compensationDocumentation regarding any employee job offers and refusals, firings for cause, voluntary resignations, and written requests by any employee for reductions in work schedule. Documentation supporting “FTE Reduction Safe Harbor.” All records relating to the Borrower’s PPP loan, including documentation submitted with its PPP loan application, documentation supporting the Borrower’s certifications as to the necessity of the loan request and its eligibility for a PPP loan, documentation necessary to support the Borrower’s loan forgiveness application, and documentation demonstrating the Borrower’s material compliance with PPP requirements. This information must be retained for six years after the date the loan is forgiven or repaid in full, and permit authorized representatives of SBA, including representatives of its Office of Inspector General, to access such files upon request.NOTE: Providing accurate calculation of the loan forgiveness amount and supporting documentation is the responsibility of the borrower, and critical to presenting the loan forgiveness application to the SBA. We may need to request additional information for the purposes of meeting the SBA guidelines for evaluation of loan forgiveness. ................
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